Spectrum Elite Tax & Consulting
We Specialize In:
Adjusted Gross Income - Gross income minus legal diminution.
Adjustment to income - And expenditure that will be reduced even if the taxpayer does not keep detailed record of deductions.
Audit - When the IRS analyzes and authenticate your return or any other transaction with tax ramifications.
Basis - The amount a piece of property is worth when you first obtain to receive it.
Blind (Legal Tax Definition) - You are considered as blind in our system if you can not see better than 20/200 with your best eye using glasses or contacts, or have a field of vision that is 20 degrees or less.
Casualty - A loss caused by the complete or limited destruction of property that results from a natural disaster, floods, storms, fires, etc.
Charitable Contribution - Money or property as a donation contributing to a qualified charity.
Child and Dependent Care Credit - A tax credit in the amount of a percentage of the amount augmented on child or dependent care by an employed distinctive.
Child Tax Credit - A tax credit accessible to people with children under the age of seventeen.
Compensation - Fees, commissions, tips, wages, or self-employment income from services performed.
Credits - Tax liability reductions that are allowed by Congress for miscellaneous purposes.
Deduction - A diminution from taxable income.
Dependent - Someone who meets the five tests of dependency and therefore will be able to qualify to be claimed as a dependent.
Depreciation - Deduction for the destruction of an item used for business purposes.
Earned Income - Income from personal services that includes tips, wages, bonuses, and any other types of compensation.
Earned Income Credit - A tax credit permitted to access to employed individuals whose income and modified gross income is less than a fixed amount.
Employment Expenses - Common and essential expenses necessary to carry out the duties for which an employee was hired.
Estimated Tax - What the taxpayer anticipates having an obligation to pay in taxes over the course of the year, generally paid by quarters with vouchers.
Exemption - A reduction of income that will alternatively be taxed.
Fellowship- A type of grant that can be received for educational purposes or scholarly intentions that are nontaxable when used for qualified expenses.
Filing Status - A category of taxpayer. Each taxpayer must select a filing status on their tax return: Single, Head of Household, Married
Filing Jointly, Married Filing Separately, or Qualifying Widow(er). Filing status determines your overall tax rate and your eligibility and income limits for various credits and deductions.
Gross Income - The total amount that must be reported on your income before it is put into use for exemptions, credits, deductions or adjustments.
Head of the Household - Type of filing status if you’re an unmarried taxpayer who pays over half of the cost of maintaining the home of a qualified individual.
Home Office Expense - Expenses proceeding from operating a business in a skillful manner in your home.
Internal Revenue Service (IRS) - The Treasury Department division accountable for accumulating your taxes.
Itemized Deductions - Payments that the tax code considers appropriate for lowering adjusted gross income.
"Jock Tax"- A State or local tax that targets traveling professionals that work in different/multiple states. For Example, Athletes.
"Kiddie Tax"- The A child’s investment income that is taxed by parents that is an unmerited income that would be an excess of a fixed tax.
Levy- A tax, fee, or fine imposed as a tax.
Local Tax- A levied tax made by the government and collected in the form of property tax charged for funding civic services etc.
Married Filing Jointly - A type of filing status if you’re a couple that is married by the end of the tax year and uses one tax return.
Married Filing Separately- The filing status that’s used by couples that marry by the end of the year and chooses to file individual tax returns. Please note that the taxpayers will not be eligible for certain tax credits if they use this type of filing status.
Modified Adjusted Gross Income - The adjusted gross income that is modified when various items are added back in.
Nontaxable Income - Income that is not taxable.
Out-of-Pocket Charitable Contributions - Expenses when you donate to a government recognized charitable organization.
Permanent and Total Disability - A disability that is estimated to last at least a year while keeping an individual from any profitable activity.
Qualifying Widow(er) - A filing status that can be used by a taxpayer for two years following a spouse's death.
Schedules - IRS forms that are used to report miscellaneous kinds of income, credits, and deductions.
Self-Employed Individual - A taxpayer who works for themselves and pays their own taxes for self-employment.
Standard Deduction - An amount subtracted by taxpayers’ income who do not itemize.
Taxable Income - A gross income that is subject to tax and may be adjusted by exemptions and deductions.
Unearned Income - Income that does not come from the services performed, such as interest, royalties, dividends, etc.
Voluntary Compliance - The idea that our tax system only relies on taxpayers to pay the correct amount of taxes on time.
Worksheet - An IRS document that is provided to taxpayers to assemble information usually not filed with the return.